The evolution of the World Bank's land policy: Principles, experience, andfuture challenges

This article examines the evolution of policy recommendations concerning ru ral land issues since the formulation of the World Bank's "Land Reform Poli cy Paper" in 1975. That paper set out three guiding principles: the desirab ility of owner-operated family farms; the need for markets to permit land t o be transferred to more productive users; and the importance of an egalita rian asset distribution. In the 25 years since that paper was published, th ese guiding principles have remained the same, but it is now recognized tha t communal tenure systems can be more cost-effective than formal title, tha t titling programs should be judged on their equity as well as their effici ency, that the potential of land rental markets has often been severely und erestimated that land-sale markets enhance efficiency only if they are inte grated into a broader effort at developing rural factor markets, and that l and reform is more likely to result in a reduction of poverty if it harness es (rather than undermines) the operation of land markets and is implemente d in a decentralized fashion. Achieving land policies that incorporate thes e elements requires a coherent legal and institutional framework together w ith greater reliance on pilot programs to examine the applicability of inte rventions under local conditions.